Nvidia tanks 10% as investors consider future without CEO Jensen Huang
Turmoil deepens ...
Potential ouster of Nvidia CEO Jensen Huang has sparked discussion among tech and business professionals. Nvidia's stock dropped by 8% following a Wall Street Journal report that the company's board intends to remove Huang.
According to Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, Huang's departure would disappoint shareholders, but he believes the company can succeed without him. Gerber also stated that Nvidia needs to focus on selling chips.
Eric Wallerstein, chief macro strategist at Clocktower Group, warned that Huang's potential removal could shake investor confidence in the broader AI trade due to Huang's role in financing the industry. He added that removing Huang would increase the risk premium on AI-related assets.
Ed Zitron questioned what else Nvidia might be withholding from investors, citing the company's past regulatory troubles. He also pointed out two previous SEC cases involving Nvidia in 2002 and 2022.
Jason Calacanis, co-host of the All-In Podcast, suggested that the board should keep Huang as chairman if an investigation finds no wrongdoing. He believed that China doesn't need Nvidia's chips, and America needs Nvidia to win in the technological race.
Keith Urbahn, president of Javelin, a literary and creative agency, called the situation a "generational case study in how not to manage a crisis." He suggested that the board should speak with its own voice and not outsource institutional credibility to the CEO.
Byrne Hobart, venture capitalist and founder of The Diff, believed that ousting Huang could lead to new competition for Nvidia. He noted that Huang's wealth and influence would make it difficult to enforce noncompetes in his home state.
Anthony Pompliano, a crypto investor and entrepreneur, predicted that Huang's yet-to-be-launched competitor would do well in the seed round. Gene Munster, managing partner at Deepwater Asset Management, stated that Nvidia will continue to sell chips regardless of Huang's position.
Jim Cramer, host of CNBC's Mad Money, questioned how investors should value Nvidia's stock following the possible ouster of its CEO.
Written by urgent.news from Business Insider's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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